Shares fell Monday and Wall Street came out of the records last week as investors worried about new political and economic risks and a resurgence of the coronavirus.
Democrats in the US House of Representatives on Monday introduced an article of impeachment against President Donald Trump, accusing him of “inciting insurrection” after the deadly invasion of the Capitol last week.
The Dow Jones Industrial Average fell 89 points, or 0.29%, to 31,008, the S&P 500 fell 0.66%, and the Nasdaq fell 1.25%.
Boeing (BA) – Request report fell 1.5% after a Sriwijaya Air Boeing 737-500 airliner crashed into the sea off the Indonesian coast on Saturday after taking off from Jakarta. The plane, a 737-500 aircraft, was much older than the Boeing 737 MAX, which landed in March 2019 after two fatal crashes.
The shares ended on a record high Friday as investors assessed expectations for more economic stimulus after a weaker-than-expected US jobs report. The US lost 140,000 jobs in December, ending seven months of employment growth.
For the week, the Dow was up 1.6% – the blue chip index’s fourth straight weekly gain – the S&P 500 was up 1.8% and the Nasdaq 2.4%.
Last week’s gains were fueled by hopes that President-elect Joe Biden would support an economy devastated by the coronavirus pandemic with more fiscal stimulus. Biden said he would present his proposals for further fiscal support on Thursday.
Stock market gains have also been driven by optimism about coronavirus vaccine rollout, even as infections continue to increase and scientists discover new variants of the virus.
Chris Larkin, director of trade and investment products at E-Trade, said cyclical parts of the market could benefit from more stimulus and hopes for a faster economic recovery.
“And with the end-of-week revenue season kicking off with big financial names, we can get a taste of what’s to come,” he added.
Major banks such as JPMorgan Chase (JPM) – Request report, Citigroup (C.) – Request report and Wells Fargo (WFC) – Request report will publish earnings reports at the end of the week.
Meanwhile, as Trump begins his final full week in office, calls are growing for him to step down after his supporters stormed the Capitol last week.
Republicans blocked a resolution calling on Vice President Mike Pence to invoke the 25th Amendment and remove Trump from power, meaning the House should call a full vote on Tuesday to impeach the president.
Twitter (TWTR) – Request report fell 6.4% Monday after the social media platform permanently banned Trump, citing concerns that Trump’s accounts could be used to incite more violence.
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